Bundesbank Consults on Minimum Criteria for Resolvability Assessment
Bundesbank is consulting on a draft circular on “minimum requirements for information systems" for the provision of information for assessments in the context of a resolution. The draft circular represents the expectations of BaFin with regard to the “target image” that must be achieved by the concerned institutions to be considered resolvable. The "target image" is with regard to the provision of suitable systems and processes as well as the provision of information and data for the purpose of assessment. This "target image" ensures uniform, comparable, and transparent administrative practice for resolution planning. BaFin is requesting comments until October 02, 2020.
As part of resolution planning, the resolution authority must examine the resolvability of institutions and groups (assessment of resolvability) and, if necessary, dismantle or remove obstacles to resolution. This includes checking whether a selected resolution strategy is feasible and whether there are potential obstacles to resolution (Article 23 (1) (c) in conjunction with Articles 26 to 31 of the EU Delegated Regulation 2016/1075). Among other things, it must be checked whether the management information systems are able to provide the information essential for the effective processing of the institution at any time—even under rapidly changing conditions (Article 29 (1) of the EU Delegated Regulation 2016/1075 in conjunction with number 9 of Section C of the Annex to the Bank Recovery and Resolution Directive, or BRRD). In the context of this circular, this means whether the institution is able to provide required information for the necessary assessments in the context of a resolution.
Related Links (in German)
Comment Due Date: October 02, 2020
Keywords:Europe, Germany, Banking, Resolution Planning, Resolution Framework, BRRD, Resolvability Assessment, Bundesbank
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